At one point in time, the GMC brand neared the chopping block as General Motors worked to restructure its operations. Years later, GMC is a real money maker for the automaker.
Bloomberg reported on on Wednesday that the GMC brand produces more profits and higher transaction prices than GM’s luxury division, Cadillac. It’s not much of a shocker; GMC exclusively sells trucks, crossovers and SUVs, which the market can’t get enough of. It also helps that premium trucks have become a real status symbol in recent years.
“GMC is a massively profitable brand,” Duncan Aldred, vice president of Buick and GMC sales, said, “and one of the big reasons we have double-digit profit margins in the U.S.”
The average GMC vehicle sells for $44,000, which hardly nips at the German luxury brand’s heels. However, Denali-branded vehicles are a different story. Denali vehicles sell for an average of $55,600, which tops Mercedes-Benz, Cadillac, Audi and BMW. It helps that 29 percent of buyers chose a GMC Denali vehicle in 2017. Looking solely at the GMC Yukon, 65 percent of buyers opted for the Denali.
As the car market slows in the United States, high-margin vehicles from the GMC brand will certainly help GM pay the bills and continue investments into electrification and self-driving cars. The 2019 GMC Sierra, which will be revealed today, will include a new Denali variant that should provide even greater differentiation from the 2019 Chevrolet Silverado—even if the interior remains nearly identical.
Comments
Sean time to get over the interior. At least let them show the whole thing before you get too crazy. We have one photo with a base truck with a key and it show 90% of the interior covered up. At least wait till tonight then rip them when we know for sure what we are getting.
The Denali and GMC high profits are not new. My local GMC dealer is GMC only. They have been averaging around $60K per unit sold for more than 5 years. They were offered a Buick franchise and told GM no thinks.
What I found interesting was Cadillac at number three on the list and about $10K higher ATP over BMW.
This shows how and why Cadillac can be patient to get their new products right and out vs. just rushing it all out.
Cadillac should do another pickup truck. Push that luxury envelope a little higher for the segment.
Give it a unique engine (V6 and V8 turbos) and suspension (MRC or air) away from those offered in the Silverado Sierra. Completely different interior layout. Offer rear bucket seats. Electric gear shift. S class style screens. High end leather, wood, and metal trim colours and options.
And Lincoln failed twice and Cadillac failed once already.
GMC has it going you keep with the proven model. You what higher end you add a GMC Denali X and add more high end exclusive options.
That way if it works good if it fails it just goes away.
To be fair, the Lincoln and Cadillac were around years ago; way before the whole “luxury pickup craze” started. I feel like an Escalade truck based on the Colorado or Silverado 1500 platform would do fairly well. It would by no means be a volume monster, but I think it would move at least 12-20k units per year, and if GM could reuse an existing platform and make it Cadillac exclusive from the inside out……
To be honest GMC Denali Yukon was around since 1999 a year after the Navagator. Then they did the truck at the same time as both the others tried and failed.
The last Lincoln was only a few years ago and most people never see them or notice them.
It would fail again.
In today’s market it takes more than what you feel.
Might note even the Canyon Denali sales are not great. I have one and seldom see another on the road. Note I got a good discount on one because of it not selling.
GMC and Buick make for a high margin premium team capable of taking on Lincoln, Lexus and Acura.
Cadillac has long-term potential but has so far been an incredibly resources intensive endeavor with little reward.
Not true as Cadillac is second in the Luxury group in ATP only behind Benz and around $9000 more than BMW.
Add Denali and it tops them all at $55k
Together, GMC and Buick have the power to be the quality and design leader ahead of Lexus. Some of this goodness must trickle down to Chevy so that the view tie becomes, like Toyota, a global high quality and desirable leader.
Where i live, people dont buy BMW or Mercedes. They buy GMC Denali’s. Loads of Yukon’s and Sierra’s creeping up in to the $80k range. GMC has really developed the premium reputation over the years. and Denali is a big part of it.
had my hope up for GMC in the future.
i also agree that GMC has really developed the reputation over the years.
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